Program milestone 18 months ahead of schedule

NEW YORK – To kick off Earth week, today Mayor Bill de Blasio announced the completion of environmental remediation on the 500th tax lot under NYC oversight since his administration began in 2014, achieving 75% of his OneNYC cleanup goal 18 months ahead of schedule. Each of the remediated properties has achieved rigorous state cleanup standards. The remediated land has been redeveloped with over 27 million square feet of new building space, representing private investment of $8.2 billion in new construction and producing an estimated 3,700 permanent new jobs, 3,600 new units of affordable and supportive housing and is expected to generate over $960 million in new, long-term tax revenue for NYC and a comparable amount to New York State. Construction of these new buildings also employed over 13,500 construction workers. Remediation since 2014 has cleaned up a total of 138 acres of land, including removal of more than 300 underground storage tanks.

“We are cleaning up vacant lots and revitalizing neighborhoods across the city – and hitting our goals a year-and-a-half ahead of schedule,” said Mayor Bill de Blasio. “New York’s city cleanup program is a commitment to combatting pollution that disproportionately affects already disadvantaged communities. Our environmental remediation program is also a boon to the economic vitality of neighborhoods, creating jobs and cleaning up land to welcome new businesses and housing.”

These cleanups eliminate pollutant exposure and have occurred in many NYC neighborhoods, with over 50% of the 577 remediated lots located in moderate- and low-income communities. All of these lots have been redeveloped, enabling safe reuse and revitalization of property that has been vacant for an average of over 10 years. Eighty-one (81) of these remediated properties are located in the coastal flood zone, where pollutant removal reduces risks from storm surge, achieving over 80% of the OneNYC goal to clean up sites in the floodplain. Remediation is managed by the NYC Office of Environmental Remediation (OER) which operates the NYC Voluntary Cleanup Program (VCP) under a collaborative agreement with New York State that delivers high quality cleanups that meet stringent state land remediation standards. The VCP is the only municipally-run environmental remediation program in the nation, and it manages lightly- and moderately-contaminated property. OneNYC is Mayor de Blasio’s plan for a strong and just city.

Mayor de Blasio also announced the establishment of new grants under OneNYC to assist community-directed revitalization of vacant land in city neighborhoods. These grants, part of OER’s Place-Based Community Planning program for vacant land, provide between $10,000 and $25,000 to help community-based organizations and faith-based developers identify strategic vacant and contaminated properties and plan environmental remediation to pave the way for community-oriented development.

The 500th remediated tax lot is located on Adam Clayton Powell Jr. Boulevard and West 127th Street in Central Harlem. The property has been redeveloped with a 10-story building that is now the home for Harlem Dowling-West Side Center for Children & Family Services and The Children’s Village, two of the oldest charitable organizations in the U.S. (founded in 1836 and 1851, respectively), 47 units of affordable housing, and 12 units of supportive housing for youth at risk of homelessness as they transition out of foster care. The project was funded by the NYC Department of Housing Preservation & Development and the NYC Housing Development Corporation and is a joint venture with affordable housing developer Alembic Community Development. The project created 117 construction jobs and will support 85 permanent jobs, including 20 new jobs that include local Harlem residents. Children’s Village serves families and vulnerable children across NYC.

Harlem Dowling provides child-care and foster care services and established the first orphanage for children of color located on West 12th St. near Sixth Avenue. In the next decade, larger quarters were constructed on Fifth Avenue between 43-44th Streets. This facility was burned down during the NYC draft riots in 1863, forcing the organization to relocate several times since. The new building, known as the Home for Harlem Dowling, is dedicated to the original building that was destroyed. The remediation resulted in the removal and regulated disposal of over 7,000 tons of soil and achieved the highest standard for soil cleanup established by New York State. The property was awarded a Green Property Certification by OER, signifying that it is now one of the safest buildings in NYC to live and work.  The project also received $70,000 in cleanup grant funding from OER. The property was vacant for 23 years before remediation and redevelopment.

“We have limited available land for new development, and it is vitally important to rehabilitate our vacant and abandoned land. This administration recognizes the disproportionate impact of environmental pollution in low-income communities and has focused city resources in disadvantaged areas to pursue greater equity in environmental quality and economic opportunity,” said First Deputy Mayor Anthony Shorris. “We will continue to build new programs and find innovative ways to improve our environment and help communities achieve their grass-roots vision for reuse of vacant land.”

“Cleanup of contaminated land is one of the most important environmental success stories of our generation. With our colleagues at New York State Department of Environmental Conservation and the U.S. Environmental Protection Agency, NYC is working to reverse 150 years of land pollution, one property at a time. This effort is critically important in low-income communities where the impacts of pollution and land vacancy hit hardest,” said Dr. Daniel Walsh, founding Director of OER.

“Ensuring that historic brownfields are remediated and contributing to the city’s economy is a vital part of creating healthy and affordable neighborhoods,” said Daniel Zarrilli, Senior Director of Climate Policy and Programs and Chief Resilience Officer for the NYC Mayor’s Office. “Today, we celebrate the achievements ahead of schedule by our colleagues at the Office of Environmental Remediation to reach the completion of environmental remediation on the 500th tax lot since 2014 representing 75% of our cleanup goals.  This illustrates the commitment of the City and partners and ensures that our land is not only clean and livable, but resilient in the face of climate change.”

“Contaminated sites put our communities at risk, lower people’s quality of life and can lead to economic blight,” said Catherine McCabe, Acting U.S. EPA Regional Administrator. “The EPA provides support to local and state partners to clean up contaminated properties such as those in New York City’s Office of Environmental Remediation program. We applaud their hard work and the accomplishment of their 500th remediated lot.”

“Along with clean air and water, clean land is one of our most important natural resources. However, our cities carry the burden from many decades of indiscriminate pollution of land. We are pleased to see the leadership that New York City has shown in operating the only city-run land remediation program in the country and the difference this program has made for our environment in such a short time. We are glad that OER works closely with New York State DEC to ensure rigorous state standards are met. We need new ways to improve the environment, and this is a model other cities can consider to address their own legacy of pollution,” said Marcia Bystryn, President of the New York League of Conservation Voters.

“We are very pleased to see the progress the de Blasio administration is making with its land remediation program. Land cleanup is important in cities because many contaminated properties are located in disadvantaged communities, cause a disproportional burden of pollution to residents and are a significant source of environmental injustice. Cleanup under OER oversight lowers this pollution burden and also enables revitalization of abandoned properties in ways that can serve community needs, such as creation of new affordable housing, jobs, and community facilities. The environmental remediation that is happening in the coastal flood plain also lowers the risks of storm surge and removes contaminants from our communities,” said Eddie Bautista, Executive Director of the New York City Environmental Justice Alliance.

“Regulation of cleanup of land pollution is an important function of government. When Environmental Defense Fund supported the NYC Brownfield bill in NYC City Council hearings several years ago, we recognized that this would result in the first city-run land remediation program in the country. We are pleased with the remarkable progress OER has made in just a few years. Importantly, New York City is showing other cities that they can lead in the effort to overcome land pollution and improve the quality of our environment for future generations,” said Jim Tripp, Senior Counsel at Environmental Defense Fund.

“For decades, our neighborhoods were the dumping grounds for the city, particularly in low-income communities of color, and residents were forced to bang their heads against the wall as more and more vacant properties became polluted eye sores that were left to fester by the city,” said Council Member Donovan Richards. “Finally, we are making common sense decisions to protect and improve our environment while also lifting up neglected communities. I’d like to thank and congratulate Mayor de Blasio for delivering environmental remediation that will help revitalize distressed areas and capitalize on their vacant land to ensure that these properties are used to improve long-forgotten neighborhoods.”

“This is not just a physical restoration of our historically neglected communities,” said Council Member Stephen Levin.  “It is also a restoration of the commitment that all communities, no matter their wealth or location, matter. Instead of polluted vacant lots, our neighborhoods can now welcome affordable housing and new businesses. I applaud the Mayor’s steadfast commitment to environmental and economic justice for today’s generation and beyond.”

“We applaud the de Blasio administration for demonstrating such a strong focus on improving the quality of land and at the same time facilitating revitalization of vacant land in New York City communities. Clean land is good for the health of New Yorkers, and new buildings provide space for housing and enables growth of businesses, creating jobs and building our economy. Congratulations for achieving this important milestone,” said Kathryn Wylde, President and CEO of the Partnership for New York City.

“The City of New York has put significant effort into working with site owners and developers to remediate their land and achieve redevelopment goals. OER has been a responsive partner in the implementation of improvements to make the process for clean-up and accessing clean soil more predictable, successful, and cost-effective,” said John H. Banks, President of the Real Estate Board of New York.

Council Member Costa Constantinides, Chair of the Council’s Environmental Protection Committee, said, “Now more than ever, our city must lead the way on the environment.  The Office of Environmental Remediation’s Voluntary Cleanup remediation program, the only municipal environmental remediation program in the nation, helps make our city cleaner and less polluted.  This newly-completed remediated lot will be redeveloped with affordable housing and help produce new jobs, which brings benefits for our environment as well as our economy.  Thank you to OER for implementing this important program.”

“We enjoyed working with OER in the NYC Voluntary Cleanup Program to make this property safe and were impressed with their willingness to work hard to find ways to help us. OER’s programs helped save us $600,000 in state taxes and fees for the cleanup and provided grant funding that helped make this project work. We would recommend this program to anyone trying to revitalize contaminated land in NYC,” said Mike McCarthy, Director of Alembic’s New York office.

“Remediating 500 properties over one-and-a-half-years across all five boroughs of NYC is a tremendous accomplishment unprecedented at the municipal level anywhere in the United States,” said Mimi S. Raygorodetsky, President of the NYC Brownfield Partnership. “Returning this land to productive use has transformed many neighborhoods across the city.”

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The NYC Brownfield Partnership is proud to recognize the following outstanding New York City remediation projects through their annual Big Apple Brownfield Awards.

Supportive/Affordable Housing: Third Avenue Residence

The Big Apple Brownfield Award for Supportive/Affordable Housing is presented to Third Avenue Residence, a 7-story low income/supportive housing residential building located in the South Bronx. The Site, which began as a vacant lot, was remediated through OER’s Voluntary Cleanup Program to the strictest (Track 1) standards. The residence provides housing for low income individuals from the surrounding area, people who are in recovery from mental illness and people who were formerly homeless. Due to the high quality site remediation orchestrated by the project team and the OER project manager (Horace Zhang), Third Avenue Residence will provide a helping hand to the South Bronx community for years to come.

Accepting the Big Apple Brownfield Award on behalf of the Third Avenue Residence team is Rachel Ataman of Hydro Tech Environmental.

BOA Connectivity: 2477 Third Avenue Bronx

The Big Apple Brownfield Award for Brownfield Opportunity Area Connectivity is presented to 2477 Third Avenue, a 4-story hotel also located in the South Bronx. As part of the Port Morris BOA process, brownfield stakeholders in this South Bronx community identified 2477 Third Avenue, a previously abandoned gas station, as a ‘Strategic Site’ for hotel development. Half of the Site was remediated under DEC’s Brownfield Cleanup Program and the other half under OER’s Voluntary Cleanup Program. The tremendous collaboration amongst the project team, DEC’s project manager (Sarah Quandt), and OER’s project manager (Zach Schreiber) played a big role in ensuring the success of the remedial aspect of the redevelopment.

Accepting the Big Apple Brownfield Award on behalf of the 2477 Third Avenue Bronx team is Bharat “BL” Patel of Jiten LLC.

Economic Development: 2040 Frederick Douglass Boulevard

The Big Apple Brownfield Award for Economic Development is presented to 2040 Frederick Douglass Boulevard, a 12-story, mixed-use residential/commercial building located in Harlem. The Site was developed as the result of of the 2003 South-Central Harlem Rezoning and was remediated under DEC’s Brownfield Cleanup Program. As a condition of development, 100% of construction contracts were awarded to WBE/MBE firms, which resulted in the creation of 300 temporary jobs. Additionally, the new development will create upwards of 100 permanent jobs, most of which will be staffed by the community through the NYC EDC. The project team worked hand-in-hand with DEC’s project manager (Dana Mecomber) to achieve successful remediation of this previously condemned site.

Accepting the Big Apple Brownfield Award on behalf of the 2040 Frederick Douglass Boulevard team are Nelson Bermeo, Elysa Lomangino, and Lilach Musman of Artimus Construction.

Environmental Protection: Brooklyn Bay Center

The Big Apple Brownfield Award for Environmental Protection is presented to Brooklyn Bay Center. This former illegal dumping ground was remediated under OER’s E-Designation Program. Remediation included the removal and/or excavation of 19 underground storage tanks, petroleum-impacted soil and free product, soil contaminated with hazardous levels of arsenic, and upwards of 33,000 cubic yards of screened trash. The resulting development is a beautiful waterfront esplanade and public park located along the Brooklyn shoreline and an adjacent retail building that has brought about 250 jobs to the surrounding community. This fantastic turnaround would not have been possible without the thoughtful work undertaken by the project team and the OER project manager (Zach Schreiber).

Accepting the Big Apple Brownfield Award on behalf of the Brooklyn Bay Center team is John Gavras of GZA.

Green Building: 345-353 State Street

The Big Apple Brownfield Award for Green Building is presented to 345-353 State Street located in Brooklyn. This site, which was once comprised of dilapidated residences and a parking structure, was remediated under OER’s Voluntary Cleanup Program. The new development has been granted LEED Gold Status for homes and includes seven, 4-story townhouses, each with a cellar and a rear yard. The townhomes include an aggressive energy package comprised of high efficiency appliances, insulated windows, and an innovative foundation and wall system that was constructed using Insulated Concrete Form. This energy efficient development has proven to be 25% more efficient than NYC code requirements and 10% more efficient than Energy Star Ratings. Remediation of this lot was successfully coordinated by the project team and OER’s project manager (Hannah Moore).

Accepting the Big Apple Brownfield Award on behalf of the 345-353 State Street team is Erica Johnston of Hydro Tech Environmental.

Open Space Award: Bush Terminal Park

The Big Apple Brownfield Award for Open Space is presented to Bush Terminal Park, an exquisite new public space that will jumpstart revitalization of Brooklyn’s industrial Port of New York. This development sits atop what was once a Class 3 Inactive Hazardous Waste Landfill. Site remediation was achieved through the Clean H2O and Clean Air Bond Acts. The Bush Terminal Park of today provides enhanced waterfront access and enjoyment to the surrounding residential community and promotes a strengthened ecosystem of tidal pools, the shoreline, and loosely wooded areas of the park. This beautiful waterfront escape from urban life would not be what it is today if not for the tirelessly coordinated efforts of the project team and the DEC project manager (Nigel Crawford).

Accepting the Big Apple Brownfield Award on behalf of the Bush Terminal Park team is James Peronto of TRC Engineers.

On March 9, 2016, NYSDEC proposed a new definition of “underutilized” for use in determining whether a site is eligible for tangible property tax credits under the NYS Brownfield Cleanup Program.  To learn more, click on the following link to an article authored by Partnership Board member, David J Freeman, Gibbons P.C.

http://www.rpelawalert.com/2016/03/articles/developmentredevelopment/nysdec-proposes-new-definition-of-underutilized-for-tangible-property-tax-credits-at-new-york-city-brownfield-sites/

On April 28, 2015, the New York City Brownfield Partnership hosted the seventh annual Big Apple Brownfield Awards (BABAs) at New York Law School.  The event was well attended by developers, consultants, attorneys and representatives from the non-profit and government sectors.  In addition to highlighting seven exceptional New York City redevelopment projects, the Partnership also recognized the collaboration between the New York State Department of Environmental Conservation and the New York City Office of Environmental Remediation in promoting and furthering brownfield redevelopment in New York City.  The award was accepted by Robert Cozzy, Director – Remedial Bureau B, DER, NYSDEC; Jane O’Connell, Chief, Superfund & Brownfield Cleanup, NYSDEC Region 2; and Shaminder Chawla, Deputy Director, NYC Mayor’s Office of Environmental Remediation

The keynote address was delivered by New York City Council Member Donovan Richards Jr., Chair, Committee on Environmental Protection.

The attendees were welcomed on behalf of Partnership President Deborah Shapiro by Executive Director Sue Boyle, who reviewed the year’s accomplishments, including the first networking event for Young Brownfield Professionals, the efforts of the Partnership’s Legislative Committee regarding the proposed revisions to the New York State Brownfield Cleanup Program Regulations, the update of the 2014 study on the impact of the BCP on site remediation and redevelopment, and the expansion of the Partnership’s pro bono program.

Mimi Raygorodetsky, Chair of the Events Committee, introduced the award segment, and Michele Rogers and Kendra Logan, the event Co-chairs, introduced the following winning projects.

Sustainable Remediation Award

52-01 Queens Boulevard, Queens, NY. The redevelopment of this property transformed it from a vacant industrial space to a vibrant, mixed-use space. Through participation in OER’s Clean Soil Bank Program, approximately 95 percent of excavated material was beneficially re-used within the five boroughs, with much of the soil used to build a new park at Bush Terminals, Brooklyn. With so little reliance on out-of-state landfills, the development’s carbon footprint and expenditures were reduced significantly and the use of a vapor barrier and ventilated parking garage to minimize soil vapor impacts will significantly minimize the energy costs associated with continued operation and maintenance of an active system.

Green Building Award

Chelsea Park, Manhattan, NY. One of the most impressive features of this LEED- Silver certified building is the tenant-accessible green roof. Incorporating this feature reduced the heat island effect, reduced storm water runoff and provides outdoor space and panoramic views. Other green features of this development include low-flow fixtures throughout the project, thereby achieving a water use reduction of 30 percent. Through a high-efficiency condensing boiler, BMS management system, energy star appliances, LED lighting, and high quality air sealing techniques, this project achieved a 24 percent energy savings. Construction wastes were diligently tracked with over 75 percent of generated material diverted from landfills and incineration facilities.

Community Outreach Award

551 Tenth Avenue, Manhattan, NY. 551 Tenth Avenue, a former auto repair shop located in Hell’s Kitchen, lies adjacent to Saint Raphael’s Roman Catholic Church and Rectory, a structure that has been standing since the earlier part of last century. Throughout construction, the 551 Tenth Avenue team went the extra mile to protect the church’s integrity, utilizing vibration monitoring and stained glass window protection, and holding weekly meetings with church staff. The church’s basement event space remained easily accessible during construction, with the developer providing additional parking and support for church events. Most notably, six floors of the 52-story mixed-use building will be dedicated to community use as schools, dorms and non-profit offices and the western façade of the new structure will be dotted with light sources mimicking the sun shining through the affected church windows.

Environmental Protection Award

Former Nessen Lamps, Bronx, NY. This Bronx property is fully occupied by a former manufacturing building that has been most recently utilized as a public school.  The property has historically been used as a garage with gasoline storage, a drug company and a lamp factory.  The Site building also served as a public school through 2011. The need to work within the existing building, (immediately adjacent to a residential apartment building and aboveground and underground NYCT subway structures), combined with complicated geology and elevated levels of chlorinated VOCs, necessitated ongoing coordination of various technologies to address environmental concerns and successfully complete the investigation and remediation over an accelerated timeframe.  Subsequent to development of a conceptual site model, multiple remedial technologies were implemented to eliminate all exposure pathways and remediate the Site in accordance with the approved remedial plan and applicable regulatory requirements.

Collaboration Award

44 Withers Street, Brooklyn, NY. The 44 Withers Street site is a former gas station and auto repair shop located in the Green Point section of Brooklyn with soil contaminated with petroleum and high levels of heavy metals.  A spill was reported during the due diligence investigation and the developer proactively contacted NYSDEC and NYCOER, and explained the need to make decisions within the small amount of time allotted to close on the property.  Considering the data in the context of the proposed development scenario, both agencies assisted the developer to lay out a remedial scenario that propelled the property sale and eventual redevelopment forward in this extremely short time period.  As a result, this formerly vacant lot is now the location of three four-story residential buildings with dedicated commercial space. 44 Withers Street is a prime example of what can be accomplished when all parties involved collaborate openly and effectively.

Economic Development Award/Brownfield Opportunity Area Award

One Fulton Square, Queens, NY. The winner of both the Economic Development and Brownfield Opportunity Area awards, One Fulton Square is located in downtown Flushing, Queens. Historically, the Site contained an auto body repair shop, garage, and a gasoline station.  Prior to remediation, the Site was a vacant lot and a parking lot, which was being operated since 2001.  The Site is now occupied by a 168-room Hyatt Place hotel built atop of a three-level glass retail podium. The new Hyatt boasts two fully equipped gyms, a yoga studio and a rooftop swimming pool. It will also have approximately 1,000 square feet of meeting space. A separate office condominium will contain 22 professional and medical offices, 43 residential condominiums, and 300 parking spaces. The retail space encompasses 330,000 square feet and the entire project is one million square feet in size. This $125 million project is in its final stages of completion.

This project will produce approximately 940 new jobs and has employed 250 construction workers, creating a positive effect on the community and creating millions of dollars in tax revenue generation.

The project is located within the Flushing Willets Point Corona Local Development Corporation (FWCLDC) Brownfield Opportunity Area (BOA). The Flushing BOA Plan is intended to further the community’s vision for the Flushing area by updating and integrating stakeholder’s ideas and concerns, leading to the formulation of recommendations for spurring reinvestment in the area. One of FWCLDC’s principal objectives for the BOA program is to encourage greater connectivity and linkages between Flushing’s waterfront and downtown Flushing. In August 2011, FWCLDC designated One Fulton Square a BOA Strategic Site because of its location straddling Flushing’s waterfront and downtown Flushing and its role in attracting additional investment in the area.

Big Apple Brownfield Award

Hour Apartment House III, Queens, NY. Hour Apartment House III is located in the Long Island City neighborhood of Queens – a neighborhood characterized by a mix of industrial, residential and commercial spaces.  Prior to redevelopment, the property was occupied by three small buildings, which housed offices for the non-profit organization, Hour Children, as well as residences and a thrift store.  As part of site redevelopment, impacts to soil, groundwater and soil vapor were remediated and in the process an NYSDEC spill was closed.  The resulting structure is a 25,000-square-foot, sustainably designed building that serves a dual purpose: it serves as headquarters for the non-profit Hour Children and it provides much-need affordable housing to formerly incarcerated mothers and their children.  The housing is welcoming and bright and it is obvious that much thought went into the design of these spaces, which function as a stepping-stone for families post-incarceration.

The Partnership also recognized the 2015 Abbey Duncan Brownfield Scholars and the 2014-2015 Brownfield Interns.

2015 ABBEY DUNCAN BROWNFIELD SCHOLARS:

Kevin Barrow, New York University

Sara Perl Egendorf, Brooklyn College

Raiana Phuong Frey, New York University

2015 BROWNFIELD INTERNS:

Alyssa Baldassini, Brooklyn Law School

Sarah Baldwin, Fordham Law School

Jack Donelan, University of Tennessee

Garrett Gissler, Columbia University

Catherine Hatt, Pace Law School

Mary Lorper, SUNY Binghamton

Catherine Lyster, Pace Law School

Brian McGrattan, Columbia University

Michelle Sarro, Vermont Law School

Rebecca Sorenson, New York Law School

Haijun (Navy) Su, CUNY Queens College

Yi Xiao, NYU Polytechnic University

Ruijie Xu, NYU Polytechnic University

The New York City Brownfield Partnership, a non-profit public-private partnership promoting the cleanup and redevelopment of brownfield sites in New York City, has just released an update of its groundbreaking 2014 study analyzing the impact of the New York State Brownfield Cleanup Program (BCP) on the cleanup and redevelopment of brownfield sites in New York State. Both the 2014 study and the update were authored by Barry F. Hersh, Clinical Associate Professor at New York University’s Schack Institute of Real Estate, with financial support from the Partnership.

The update, which analyzes newly-available data from tax years 2013 and 2014, confirms the conclusion of the 2014 study: that the most seriously-criticized aspects of the BCP were, to a significant degree, addressed by changes made to the program in 2008 by the state legislature.

The key conclusions of the 2015 update include the following:

– Sites admitted into the BCP since 2008 tend to be smaller, more geographically diverse, more likely to be located in low income areas, and more likely to have industrial or affordable housing end uses than sites admitted in the 2003-2008 period.

– The post-2008 projects are, at least to date, substantially less expensive to the state treasury than those admitted in the 2003-2008 period. The average tax credit cost for those sites to date is approximately $6 million, compared to $13 million for pre-2008 projects.

– A much greater percentage (36%) of credits of tax credits for post-2008 projects have been earned as a result of site cleanup expenses rather than development costs (64%). The comparable percentages for pre-2008 projects are 6% (cleanup expenses) and 94% (development expenses).

For further information about the updated study, please contact Deborah Shapiro, President of the New York City Brownfield Partnership, at (646) 388-9544, or David J. Freeman, Chair of the Partnership’s Legislative/Policy Committee, at (212) 613-2079.

Click here to view the full study.

David J. Freeman, Director, Real Property & Environmental Law Gibbons P.C.

Governor Andrew Cuomo and leaders of the New York State Senate and Assembly have reached an agreement with respect to extension and reform of the state’s Brownfield Cleanup Program (BCP), a significant development in view of impending expiration of tax credit eligibility on December 31, 2015.

The essential elements of the deal are as follows:

• All sites currently in the Program, and those which are admitted prior to December 31, 2022, will be eligible for tax credits if they obtain their Certificates of Completion (COCs) by March 31, 2026.

• Sites admitted on or after the later of (a) July 1, 2015 or (b) the date on which the Department of Environmental Conservation (DEC) proposes regulations defining “underutilized” (see below) will be subject to newly-enacted limits on tangible property (development) credits.

• Sites admitted prior to June 23, 2008 will be “grandfathered” into the existing tax credit scheme if they obtain their COCs by December 31, 2017. Sites admitted from June 23, 2008 until the later of (a) or (b) above will be grandfathered if they obtain their COCs by December 31, 2019. If they fail to meet those deadlines, they can still obtain tax credits under the Program, but only under the more stringent guidelines applicable to newly-admitted sites.

• Despite efforts to restrict the types of expenses that qualify for site cleanup credits, eligibility for such credits remain broadly defined. The one major new limitation is that applicants will not be able to count expenses of foundations that exceed the cost of cover system requirements under applicable regulations.

• Sites in New York City that are newly-admitted, or that are currently in the program but fail to obtain their COCs in time to be grandfathered, will need to meet one or more of the following criteria to qualify for development credits:

– being located in an Environmental Zone;

– meeting the definition of “affordable housing”; or

– being “upside down” (i.e., with the projected cost of investigation and cleanup exceeding 75% of the value of property if uncontaminated) or “underutilized” as defined by regulations to be promulgated by DEC by October 1, 2015. Since this will be the only category under which many New York City sites can potentially qualify for development credits, how DEC defines ”underutilized” will be of critical importance to the regulated community.

• Development credits will be increased for qualifying sites that are in Environmental Zones or Brownfield Opportunity Areas, achieve Track 1 cleanup standards, provide affordable housing, or are used primarily for manufacturing activities.

• Payments to “related parties” (those with 10% or more common ownership) have been limited, but by far less than under prior proposals. Only payments of “service fees” (defined as fees calculated as a percentage of project or acquisition costs) will be disallowed, and even such fees can count toward development credits if and when actually paid.

• “Brownfield site” will be newly defined as a site which has contamination in excess of standards set by DEC based on the reasonably anticipated use of the property.

• There will be a new, streamlined cleanup program for sites willing to forego tax credits.

• Class 2 (significant threat) sites will be eligible for entry into the BCP if being cleaned up by a Volunteer (a party not responsible for the original contamination) and DEC has not identified a viable responsible party who can pay for the cleanup.

• DEC oversight fees will be waived for Volunteers, and DEC is authorized to negotiate reasonable flat fee arrangements for other BCP participants.

• State hazardous waste disposal taxes and fees are waived for U.S. Environmental Protection Agency or court-ordered cleanups under the federal Superfund law, and for cleanups under written agreements with a municipality having a memorandum of agreement with DEC.

Legislation embodying these terms expected to be passed by both houses of the legislature and signed by the Governor by April 1, the beginning of the state’s fiscal year.

Please contact the Partnership at info@nycbrownfieldpartnership.org if you would like additional information.

This article is based on the blog originally posted on the Gibbons Real Property & Environmental Law Alert blog site at www.rpelawalert.com.

On January 26, 2015, the New York City Brownfield Partnership released a statement regarding the New York State Bar Association Environmental Law Section’s January 8, 2015 “Memorandum and Recommendations Regarding Proposed Extension and Reform of the Brownfield Cleanup Program.”

The memorandum was prepared by David J. Freeman and Larry Schnapf, members of the Partnership’s Board of Directors.

Click here to view the full memorandum.

The New York City Brownfield Partnership (the Partnership) supports the efforts of the Environmental Law Section of the New York State Bar Association to create broad dialogue on the proposed extension and reform of the New York State Brownfield Cleanup Program (BCP), as expressed in the Bar Association’s memorandum dated January 8, 2015.  The Partnership agrees with the conclusion that the BCP needs to be revised and extended to continue environmental cleanup and economic revitalization throughout New York State.  We offer our assistance to join the Bar Association’s work with the Governor’s office and the New York State Legislature to continue and enhance the state’s brownfields efforts.

The Partnership, a 501(c)(3) nonprofit organization, serves as a primary resource for information on brownfields and brownfield redevelopment in New York City.  Our efforts advance public awareness and understanding of the benefits, opportunities, and best practices of brownfield redevelopment by fostering collaborative relationships among brownfield developers, property owners, government agencies, and community groups.   We promote excellence in brownfield redevelopment by honoring successful brownfield projects through our annual event called “the Big Apple Brownfield Awards”,  support the education and training of brownfield professionals through our scholarship program, and provide pro-bono counseling to community residents, groups and corporations, that require assistance in understanding the implications of brownfield remediation and cleanup in their communities.

Due to the Partnership’s commitment to New York City brownfield efforts, we are particularly supportive of recommendations 4, 10 and 11 in the Bar Association’s January 8, 2015 memorandum, all of which will enhance the efforts of the New York City Office of Environmental Remediation (NYCOER) and benefit the entire State. Creating an expedited cleanup process  for properties that do not pose a significant environmental  threat  and for applicants who are willing to waive the tax credits but want/need to obtain liability release  (Recommendation 4), exempting sites under municipally-run cleanup  programs from the hazardous waste program  fee and special assessment (Recommendation 10), and allowing municipally-submitted sites with  tax lien sales into the BCP (Recommendation 11) will all enhance the brownfield cleanup and property revitalization efforts in New York City.  These recommendations are consistent with our support of NYCOER’s programs and the overall goals of the Partnership.

The Partnership enthusiastically supports the continuation of and improvements to the New York State BCP and reiterates our support for the Bar Association’s Environmental Law Section’s efforts to bring brownfield stakeholders, including the Partnership, together to continue discussions regarding the important issues contained in the Section’s January 8, 2015 “Memorandum and Recommendations Regarding Proposed Extension and Reform of the Brownfield Cleanup Program”.

Contact Deborah Shapiro, NYCBP President at (212) 696-0670 or dshapiro@nycbrownfieldpartnership.org for further information.

EPA Announces FY2015 Funding for Brownfields Assessment and Cleanup Grants – Proposal Submission Deadline is December 19, 2014

Funding opportunities include Brownfields Assessment Grants and Brownfields Cleanup Grants. Click HERE for more information.

EPA is announcing the availability of funding to eligible entities wishing to develop an area-wide plan for brownfields assessment, cleanup, and subsequent reuse. This funding is for research, technical assistance, and/or training activities directed to one or more brownfield site(s) located in a specific area (such as a neighborhood, district, local commercial corridor, community waterfront or city block).

Each project funded under this grant must result in an area-wide plan which includes specific plan implementation strategies for assessing, cleaning up, and reusing the brownfields site(s) as well as related brownfields and project area revitalization strategies. EPA anticipates awarding approximately 20 projects in total, funded at up to $200,000 each. Please note that applicants who received a BF AWP grant from EPA in Fiscal Year 2010 or 2013 (FY10 or FY13) are not eligible to apply under this competition. The proposal submission deadline is September 22, 2014.

EPA will provide two guidelines outreach webinars. The same information will be presented at each webinar. For information on how to join each webinar click here. The Webinar times/dates are:

– July 30, 2014 from 12:30 – 1:30pm EDT

– August 14, 2014 from 2 – 3:00pm EDT

More information on EPA’s BF AWP Grant program can be found on the EPA Brownfields Website.

On May 13, 2014, over 65 people joined the Partnership for a guided tour of the High Line Park, focusing on six ongoing or completed brownfield development sites along the park that are being remediated for reuse. The highlighted projects and speakers included:

Hudson Yards, a large mixed-use development at 30th Street (Jason Hayes, Langan)

507 West 28th Street, a residential development (Joe Good/Langan)

76 11th Avenue, a former MGP site (Mike Burke/Langan, Mike Perciballi/Posillico)

820 Washington Street, new location for the Whitney Museum (Axel Schwendt, AKRF)

The tour was led by Dan Walsh, Director of the NYC Office of Environmental Remediation (OER). Additional background was provided by Partnership Board member Gary Rozmus (GEI Consultants), who spoke about CSX’s decision process prior to allowing the defunct rail line to be used for recreational purposes.

The tour concluded at the Biergarten, at the Standard Hotel under the High Line. Based on the participants’ feedback, this is an event that will definitely be repeated!